TDS can deduct 50%

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This query is : Resolved

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This discussion clarifies the rules for Tax Deducted at Source (TDS) when only a partial payment is made to a vendor. If you book the full invoice amount and create a 100% liability, you must deduct 100% TDS on the entire amount, even if you only pay 50% to the vendor. TDS is generally deductible on the earlier of the invoice booking date or the payment date.

amruth

amruth (Querist)
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11 May 2020 Hi All,

If we received Service Invoice for Rs.10000+18%GST=11800/-
but we paid only 50% of amount to Vendor Rs.5900/- then we can deduct TDS 50% can pay to Department or we have to deduct 100% TDS and pay.

Thanking You
Amruth Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 May 2020 Yes, you can deduct 50% TDS which is only payable.
If you create 100% liability and pay only 50%, TDS has to be deducted 100%.

Gokul Sharma

Gokul Sharma (Expert)
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11 May 2020 TDS has to be deducted 100%.

As booking of bill or payment which ever is earlier.

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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11 May 2020 In the above case you are booking 100% of the expenditure and creating your liability.
TDS is to be deducted @100% on the entire liability

amruth

amruth (Querist)
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11 May 2020 Thank you very much Sir

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